Insurance companies don’t make for great conversation fodder at parties, but few other businesses can match their potential for creating wealth. The Nigerian Stock Exchange is home to one particularly interesting opportunity in the space that now trades at a P/E ratio of 12.1 and a juicy 11.3% dividend yield.
MTN Group, Africa’s wireless telecommunications giant, had a rough start to the year.
Stiff competition, regulatory action, weakening currencies, and a labor strike in its home base, South Africa, conspired to slash the company’s first half earnings by 24.2%, and its shares have dropped 21% since their September high.
But don’t push the “sell” button quite yet.
Sometimes it’s fun to pore over balance sheets and cash flow statements in search of that 10-bagger stock — the one that transforms your meager nest egg into a comfy cash cushion.
But let’s face it.
You usually have more enjoyable things to do on a weekday evening or Saturday afternoon.
That’s why exchange traded funds (ETFs) are one of the most useful tools in an investor’s toolkit.
This is a guest contribution from Simon Maina. KenolKobil is a leading oil distributor and marketer of petroleum and other associated products (e.g. petrol stations) in East Africa. Of late, it has also extended its footprint into Southern Africa with Zambia being its most recent investment. I find shares of the company particularly attractive because […]